European Journal of Business and Management www.iiste.org ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol.7, No.5, 2015 145 The Strategic Effect of Crisis Management on Business Continuity Management in Corporate Organizations: A Case of Equitol Bank, Kenya Fredrick Mutia Mwaiwa* Wilson Osito Odiyo Business School of Africa Nazarene University, P.O. Box 53067-00200, Nairobi, Kenya *E-mail of corresponding author: mwaiwa2020@yahoo.com Abstract Corporate organizations today require a robust understanding of business continuity and they need to draw a wide plan on how they can deal with unexpected crises which hamper organizational success efforts and operational continuity. Corporate image, reputation, brand, trust and loyalty of all stakeholders in a corporate entity are key factors in the background of business continuity. An efficient and effective business continuity management plan is important for any corporate organization as it ensures information availability and that corporate organizations survive and continue to operate uninterrupted in the event of any crises that the organization may face. Business Continuity Management (BCM) aims at ensuring that the organization survives in the long run and as such it should be a key responsibility of senior management. Organizations need to be adequately prepared for any unexpected events which could interrupt the way they operate and their survival chances in both short and long run. Thus, this paper sought to examine the effect of crisis management on Business Continuity Management in Corporate organizations. The study adopted a case study design and was performed at Equitol Bank. A sample of 60 respondents from a target population of 200 staff members was obtained using stratified random sampling technique. Questionnaire and document analysis were the main tools of data collection for the study. Data coding and analysis was done using qualitative and quantitative methods. Descriptive statistics such as means, and cumulative frequencies were employed in summarizing data. Chi- square correlation coefficient was computed to establish the level of significance of correlation between BCM and business continuity and BCM and crisis management). The study found that there is a positive and significant correlation between BCM and business continuity represented by (@ 2 (58) =59.87, p < .05), and BCM and crisis management (@ 2 (58) =67.065, p < .05). Keywords: Business Continuity, Business Continuity Management, Corporate Organizations, Crisis Management 1. Introduction Shaw and Harrald (2004) note that a well-designed business continuity plan and crisis management process will help an organization to recover in an orderly way and within the specified timelines. These plans are important as the organization can rest assured that its critical business operations can carry on in the event of a disruption or a disaster. These two plans are critical as Business Crisis and Continuity Management (BCCM) teams and consultants provide support throughout the entire business continuity lifecycle. Some of the support areas include: Business impact analysis which identifies the key business processes, people, systems and dependencies and any impact that their interruptions would have on a business; risk assessment which is critical in helping the people to develop the skills and knowledge that they need to manage crises through identification of risks and threats to their businesses; developing strategies for recovery before any serious impact is suffered; document plan, exercise, testing and implementation. However, in today’s business environment it is evident that both small and big organizations are good at coming up with vision and mission statements as well as strategies that are geared towards increasing profitability and shareholders’ value, but poor at implementing business continuity plans and managing the same plans and strategies. This has been so because most of the companies are not willing to commit an extra cost on any unforeseen event as they always believe the same will not happen. One of the key components of Business Continuity Management is effective crisis management. If crises are well anticipated and managed, the chances of business continuity in the face of such uncertainties occurring is enhanced. Many managers however have a misconception that the cost associated with designing, developing, implementing, training and delivery of crisis management programs and plans exceeds the benefits. The most common objectives include: lost revenue, customer confidence, compliance penalties and fines, staff confidence and effectiveness (Laudicina, 2005). Crisis management is increasingly gaining importance worldwide as an effective risk mitigation tool and there is now an important concern for corporate organizations to invest and allocate resources towards Crisis management. In most cases crisis management resources are reallocated to other priority areas that the management deem key to the success of a corporate organization. Staff lacks the knowhow on the existence of crisis